Quick overview

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TotalEnergies SE and its partners were released from $1 billion in offshore wind leases by the Trump administration, allowing the French energy giant to use the money for investments in US oil and natural gas.

Interior Secretary Doug Burgum stated on Monday at the CERAWeek by S&P Global conference in Houston that Total is no longer committed to building wind farms off the coasts of New York, New Jersey, and North Carolina as a result of the agreement.

According to a statement from the Interior Department, TotalEnergies will receive “dollar-for-dollar” reimbursement from the US for the new fossil-energy investments up to the amount it paid for the original leases. President Donald Trump’s campaign against offshore wind is part of his wider effort to roll back Biden-era climate policies and to champion fossil fuels.

Recent court rulings have undermined his attempts to stop the construction of five wind farms at sea. According to Patrick Pouyanne, CEO of TotalEnergies, the company will “accelerate” its investments in US LNG. At a press conference in Houston, he stated that the US deal has no bearing on the company’s commitment to wind power in other countries

According to TotalEnergies’ research on these leases, offshore wind projects in the US are more expensive than those in Europe and may affect consumers’ ability to afford power, the French company said in a follow-up statement.

The energy giant, which is currently the largest LNG exporter from the United States, will reinvest the refunded lease fees to support both the Rio Grande LNG plant, which is presently being built in Texas, and its other oil and gas operations in the country.